This note intends to analyse the draft notification issued by the CBDT under the third proviso to the clause (38) of section 10 of the Income Tax Act, 1961 highlight its impact on the primary and secondary market transactions.

The RB, by a circular issued on April 13, 2016, has notified certain key changes in relation to overseas issuance of Indian Rupee denominated bonds (popularly known as ‘Masala bonds'), by eligible Indian entities.

The Government of India recently liberalised its policy on foreign investment in the insurance sector, permitting foreign direct investment up to 49% of the paid-up capital of an Indian insurance company under the automatic route.